Cap Savings Numbers

[Sarg01]

I took the 2007 cap numbers from HPF.com (http://www.houstonprofootball.com/cap2007.html) and calculated the cap savings associated with releasing Texans' players. Not every current Texan had an entry in the source material, additions during the year are not covered - though these are probably all free agents (and thus no cap hit or savings for 2007).

Numbers are ordered by position and include both March release and June release savings. Negative numbers represent a cost against the 2007 cap to release that player. Positive numbers are immediate cap savings that would be realized by releasing or trading that player.

QB Carr, David Mar: $1,236,560 Jun: $3,243,280 QB Rosenfels, Sage Mar: -$420,160 Jun: $86,560
RB Davis, Domanick Mar: -$580,160 Jun: $726,560 RB Lundy, Wali Mar: $246,560 Jun: $303,280 RB Dayne, Ron Mar: $0 Jun: $0
FB Cook, Jameel Mar: -$236,880 Jun: $9,840
WR Johnson, Andre Mar: -$325,428 Jun: $2,462,286 WR Moulds, Eric Mar: -$2,125,000 Jun: -$750,000 WR Walter, Kevin Mar: -$520,160 Jun: -$13,440 WR Mathis, Jerome Mar: $316,280 Jun: $435,000
TE Daniels, Owen Mar: -$78,440 Jun: $140,780 TE Putzier, Jeb Mar: -$357,660 Jun: $111,560 TE Bruener, Mark Mar: $0 Jun: $0
OL Flanagan, Mike Mar: $136,560 Jun: $1,143,280 OL Weary, Fred Mar: $453,280 Jun: $710,000 OL Hodgdon, Drew Mar: $386,313 Jun: $435,000 OL Winston, Eric Mar: -$261,440 Jun: $49,280 OL Spencer, Charles Mar: -$263,440 Jun: $48,280 OL McKinney, Steve Mar: -$470,160 Jun: $36,560 OL Salaam, Ephraim Mar: $0 Jun: $0 OL Pitts, Chester Mar: -$2,770,000 Jun: -$1,045,000 OL Wiegert, Zach Mar: -$3,826,880 Jun: -$2,245,160
DL Williams, Mario Mar: -$11,058,600 Jun: -$8,651,880 DL Weaver, Anthony Mar: -$7,126,880 Jun: -$4,720,160 DL Johnson, Travis Mar: -$4,719,435 Jun: -$3,688,548 DL Babin, Jason Mar: -$1,359,658 Jun: -$661,271 DL Kalu, N.D. Mar: $0 Jun: $0 DL Payne, Seth Mar: -$1,063,440 Jun: $1,068,280 DL Peek, Antwan Mar: $0 Jun: $0
LB Greenwood, Morlon Mar: -$956,160 Jun: $450,560 LB Wong, Kailee Mar: -$1,090,160 Jun: $81,560 LB Rainer, Wali Mar: $0 Jun: $0 LB Polk, DaShon Mar: $0 Jun: $0 LB Ryans, DeMeco Mar: -$4,103,160 Jun: -$2,615,440
CB Robinson, Dunta Mar: -$2,857,066 Jun: -$1,189,533 CB Sanders, Lewis Mar: $0 Jun: $0 CB McCleon, Dexter Mar: $0 Jun: $0 CB Faggins, Demarcus Mar: $200,000 Jun: $625,000
S Brown, C.C. Mar: $403,180 Jun: $435,000 S Simmons, Jason Mar: $583,280 Jun: $710,000
ST Brown, Kris Mar: $189,840 Jun: $576,560 ST Stanley, Chad Mar: $0 Jun: $0 ST Pittman, Bryan Mar: $511,613 Jun: $585,000 ST Evans, Troy Mar: $0 Jun: $0

[Marcus]

So, if I'm not mistaken, June cap casualties would be Carr, McKinney, Payne, and Greenwood.

Correct?

[infantrycak]

People really should not get too enamored of June cuts. They don't reduce the hit, they just delay it. Teams have gotten away from hamstringing themselves by putting off dead money hence the drastic reduction of June cuts over the last few years. Frankly the Texans have dead money on next year's cap right now which needs to be brought forward to suck up the cap room they have remaining this year.

[Sarg01]

I expect that we will be starting Carr next year.

McKinney's number isn't big enough to warrant releasing him this year - it's less than the minimum league salary, so his replacement would effectively cost us more than he would, and I think he's a serviceable backup.

Payne - yeah, he's probably a goner come June 2.

Greenwood's play has picked up enough in the last few games that he might be kept around. Again, it'd be close to a wash to get even a street FA replacement. He might even start if we can't come up with two OLBs in the offseason!

On the other hand, Jason Simmons might well be replaced positively to the cap.

Kailee Wong may well be done if he couldn't even beat out Orr.

Domanick Davis better come back in training camp, though, or he can be replaced positively to the cap.

Kris Brown is in big trouble.

Flanagan could also be a 1 mil+ cap savings if we think we find another answer at center.

Travis Johnson and Jason Babin's cap numbers mean they'll be sticking around, justified by performance or not.

[Sarg01]

People really should not get too enamored of June cuts. They don't reduce the hit, they just delay it. Teams have gotten away from hamstringing themselves by putting off dead money hence the drastic reduction of June cuts over the last few years. Frankly the Texans have dead money on next year's cap right now which needs to be brought forward to suck up the cap room they have remaining this year.

True enough, but look at our list of contracts coming up at the end of the 2007 season and it won't look so troubling. We're talking Weary, Mathis, CCBrown, Hodgdon, J.Simmons, and B.Pittman - that's it. That's the list. I can't imagine there being a big price tag associated with re-signing any of those guys.

More likely, we'll be trying to extend Dunta and AJs contracts next year. This probably brings Dunta's number up (it's low, just over 2 mil) and AJ's number down (it's over 8 mil). Between the two, it probably cost us a million or three. However, we're getting BACK almost 15 million in dead money from Walker, Wade and Robaire. That leaves plenty of room for anything we want, even if its extending Carr.

[Tulip]

Very interesting. Thanks for the info.

[Texan1]

Wow, great info sarg.

Don;t see how can wee keep Carr when savings like that are possible. We could pick up a nice DT for that.

[DatTexBoy]

Trading Carr in June should be my Christmas present...always in Payne too.

[brewhaus]

I have a salary cap question.
Julius Peppers will be going to the pro bowl for the 3rd straight year. This also means he gets a 3 million $ bonus per the way his contract is written. Each of the last 2 years he went he got 1 million $, per his contract. How does this bonus money count against the cap? Or, does it count against the cap at all? I am curious because this incentive seems to have motivated Julius and I wonder if any of the Texans contracts are structured like this.

[Sarg01]

Any incentive bonuses are either likely to be earned (LTBE) or not likely to be earned (NLTBE). These terms are more black and white than they sound. Any incentive target that a player made the period before is automatically LTBE. Any incentive target the player DIDN'T make the period before is NLTBE.

To use an extreme example: Lets say a player's contract gave an bonus if a player played in 16 regular season games each year. In 2005, he plays in all 16, but blows his ACL and MCL in the last of these. Despite the fact that there is no medical way that this player will play in Game 1 of the 2006 season - and thus can not possibly meet his incentive - the incentive is nevertheless LTBE (because it was achieved in the previous period it is automatically assumed it will be met in the next).

So, since Julius Peppers is just now fulfilling the incentive clause, it must have been classified a NLTBE.

LTBEs are charged against the cap, in full, in the year of the incentive, no matter what.
NLTBEs are not charged against the current year cap, no matter what.

However, where it gets really interesting is when a LTBE is NOT made or an NLTBE IS made.

First, the easy one. NTLBE that are made are charged, in full, to the NEXT year's salary cap. So in your example, Pepper's bonus eats at the 2007 cap, costing nothing in 2006.

Now, the fun part. LTBE bonuses (like our medical example above) that don't come to pass. These get credited back in the next year. So your salary cap actually is higher than the official cap by the amount of those "bad" LTBE bonuses.

There's special rules for rookies and other stuff, but that's way too much detail to go into.

[brewhaus]

Many thanks Sarg01 for keeping it in layman's terms.

[DatTexBoy]

Any incentive bonuses are either likely to be earned (LTBE) or not likely to be earned (NLTBE). These terms are more black and white than they sound. Any incentive target that a player made the period before is automatically LTBE. Any incentive target the player DIDN'T make the period before is NLTBE.

To use an extreme example: Lets say a player's contract gave an bonus if a player played in 16 regular season games each year. In 2005, he plays in all 16, but blows his ACL and MCL in the last of these. Despite the fact that there is no medical way that this player will play in Game 1 of the 2006 season - and thus can not possibly meet his incentive - the incentive is nevertheless LTBE (because it was achieved in the previous period it is automatically assumed it will be met in the next).

So, since Julius Peppers is just now fulfilling the incentive clause, it must have been classified a NLTBE.

LTBEs are charged against the cap, in full, in the year of the incentive, no matter what.
NLTBEs are not charged against the current year cap, no matter what.

However, where it gets really interesting is when a LTBE is NOT made or an NLTBE IS made.

First, the easy one. NTLBE that are made are charged, in full, to the NEXT year's salary cap. So in your example, Pepper's bonus eats at the 2007 cap, costing nothing in 2006.

Now, the fun part. LTBE bonuses (like our medical example above) that don't come to pass. These get credited back in the next year. So your salary cap actually is higher than the official cap by the amount of those "bad" LTBE bonuses.

There's special rules for rookies and other stuff, but that's way too much detail to go into.

Can you do my taxes?:shades:

[threetoedpete]

BUMP.Sticky it mods untill Fa is over

[threetoedpete]

Bump